Despite weak leads from Wall Street, the Australian share market opened in positive territory this morning and is gaining momentum tracking 1.43 per cent higher at noon. We’ve seen a recovery in BHP shares today with some bargain hunters stepping in, despite concerns over how much the mining giant will have to pay in compensation following the collapse of its 50 per cent owned Samarco mine in Brazil.\
We’ve also seen a recovery in Dick Smith shares today with the stock bouncing after it lost close to 60 per cent of its value yesterday. Law firm Slater and Gordon has also extended its gains.
The S&P/ASX 200 index is 74 points higher at 5,240. On the futures market the SPI is 65 points higher.
Economic news
The Reserve Bank of Australia will meet today for its December board meeting. But according to economists no surprises there, with rates expected to be kept on hold at a record low of 2 per cent. Also in economic news Sydney home prices have fallen the most in five years, according to the latest figures from CoreLogic. It’s the first quarterly decline since the start of the housing boom four years ago, with dwelling value’s in Sydney dropping 1.4 per cent for November. Melbourne led the decrease, with a 3.5 per cent fall in prices.
Company news Sandfire Resources NL
(ASX:SFR) has advised that construction of the new 10.6MW solar power station at its DeGrussa Copper Mine in WA has reached a key milestone with installation of the first solar PV panels now underway. The $40 million project is the largest integrated off-grid solar and battery storage facility in Australia. Shares in Sandfire are trading down 1.33 per cent at $5.19.
Compumedics Limited
(ASX:CMP) has secured a contract to provide its sleep diagnostic equipment to one of the US’s most prestigious Children’s hospitals in San Fransciso. The contract win is in line with the company’s goal to grow its core business including sleep diagnostics into world markets, the US in particular. Shares in Compumedics are trading 17.65 per cent lower at 42 cents.
Best and worst performers
The best performing sector is REITs, gaining 2.1 per cent to 1,288. Shares in Vicinity Centres have risen 3.69 per cent and trading at $2.81. Shares in Scentre Group and BWP Trust are also stronger.
The sector with the least gains is Healthcare, adding 0.4 per cent to 19,810. Shares in Virtus Health have fallen 2.47 per cent, trading at $6.32. Shares in Resmed and Sigma Pharmaceuticals are also lower.
Gold and the dollar
Gold is trading at $US1,065 an ounce.
The Australian dollar is buying 72.32 US cents.
